We’re coming up on October and in San Diego that can mean: wildfire season. Here is some information to dispel common myths and a few tips on prevention.

Wildfires should not be frequent: San Diego County is one of the most wildfire-prone areas in the world, however, frequent wildfires in this area are not natural. The two dominant habitats which are coastal sage scrub and chaparral, do not often burn. Estimates are that wildfires used to naturally occurr every 30-125 years. Unlike other communities in the country, like prairies and woodlands, that need fire every few years to maintain them, our natural habitats cannot withstand frequent fires.

Santa Ana winds are not the cause of fires: Cal Fire has found that at least 95% of all San Diego wildfires in recent history were caused by human activity (machinery sparks, campfires, arson, etc.). While hot Santa Anas and drought create a high risk of fire, it’s human activity that is the cause. The invasion of non-native weeds, which burn more easily than our native habitat, has also made us more susceptible.

Our natural habitats are not naturally flammable: The natural vegetation in our area is not fire-prone. In fact, native plants tend to act more fire-resistant than many of the exotic species of plants that are commonly sold. Plants that are more fire-resistant than others will still burn if they haven’t been watered in months, and are subjected to hot, dry winds (and dangerous human activity).

Now that we have dispelled some myths about wildfire, here are some tips from Landscape architect Kay Stewart on how to help prevent them:

Anyone working with gas-powered tools near wildlands should have a fire extinguisher. More fires are started by people with gas powered machinery in dry vegetation than due to any other accidental cause.

Take note of power poles that appear to move in winds. These may spark and start a wildfire. Report them to the power company.

Remove any dead plants near shoulders on highways. Catalytic converters and brakes are hot enough to ignite dry vegetation on contact.

Have you ever thought of going solar at home? In San Diego, where we have a high number of sunny days, more and more people have been following this trend. This post will break down some of the questions I hear most often from clients.

Since 1839 we’ve known light could be turned into electricity but it wasn’t until the 1950s, that the first solar cells were available commercially. Since then, improvements in solar technology have been enormous, as well as drops in cost of going solar. Since 1977, the price of solar panels has gone down approximately 100 times over, and solar power can be cheaper than power from the grid for some.

Paying for the System

Solar systems come with a price tag comparable to a new car. Because of that, most people will need to use a financing option instead of purchasing in cash. There are various ways to finance your solar system, and the difference in savings can be huge.

Solar leases & Power Purchasing Agreements (PPA): Both are financial agreements where a third-party developer owns, operates and maintains the solar system. The customer agrees to have the system on their property and purchases the system’s electric output from the solar services provider for a predetermined period.

Loans: Solar loans are available at a number of banks and organizations across the country.

Property Assessed Clean Energy (PACE) financing: This helps homeowners and commercial building owners cover the full cost of installing a system with a flexible repayment plan extending up to 20 years. The system is paid off gradually via higher property taxes.

Owning vs. Leasing

Do you want to own your system or lease it?

Moving soon?: If you intend to move after a few years and you have a solar lease, you will have to convince the new buyers to take over the lease – which isn’t always easy. If the system is paid for, you can typically roll the cost of the system into the price of the home. More and more buyers are interested in homes with green upgrades like this.

Lease to own: If you choose the leasing or PPA route, some companies allow you to buy the system for a fair market value once the leasing period is over.

Longevity: Solar panels are very durable and can produce electricity close to the initial factory specs for many decades. Your long-term savings could be three or four times higher if you buy solar panels rather than lease them for a 20-year period.

Costs & Savings Estimates

Most every solar company has a “solar calculator” on their website to estimate how much a system will cost and how much it will save you. Each calculator will yield different estimates, so compare as many as possible and feel free to ask each company what assumptions they’ve used to come up with their estimates. Here are some ways they estimate cost and savings:

Electricity costs: Numbers can be based on the national average, regional averages, or based on information you provide.

Incentives: Calculators may or may not include federal, state and local incentives which, if you’re eligible, can mean big savings.

Potential generation: Some calculators take a satellite photo of your roof and offer a close estimate of how much electricity you can generate. Some use your regional solar irradiation to create the estimate, and others use the size of your roof or your typical electricity consumption.

Assumptions: Another key factor is determining which assumptions they use regarding financing (a cash purchase, a lease, a loan or PACE financing).

Equipment Used

There are many different solar panels on the market – each with their own benefits and disadvantages. Solar panels used for the rooftop solar market are less varied, but there are still considerable differences between each brand.

Price vs. efficiency: The biggest price differences stem from variations in efficiency, but efficiency doesn’t usually matter unless you have very limited space on your roof.

Warranties & reliability: How reliable are the chosen company’s panels known to be – and is the company likely to be around in 10 years?

Options: Does the installer give you a choice between types of panels, or at least disclose where the panels are manufactured?

Services Included

Does the company offer service beyond installation?

Maintenance & warranties: Some companies install the solar panels, provide maintenance, and offer warranties on both the panels and the work.

Financing: Some companies assist you during the financing process.

Incentives: Some help you find and take advantage of incentives you may be eligible for.

Manufacturing: A number of solar installers also manufacture the solar panels and solar cells they use.

Customer Service

Will you be calling an 800 number or get connected directly to someone who can help?

Dedicated salesperson: Your solar company may provide a dedicated salesperson from day one or after a certain stage in the process – or maybe not at all.

Post-sale: Ideally, your initial point-of-contact will be available if you need something after sales, but you may be assigned to a different representative at a later time.

Service fees: There’s a chance the premium service will also come with an additional cost.

I hope this post has helped inform you more about options for going solar. Please feel free to call/text or email me anytime with questions! 760-390-6330 janairealtor@gmail.com Have a great day!

Great news! Some tax credits for residential energy efficiency have been renewed. These tax credits are available for purchases made in 2016, as well as retroactive to purchases made in 2015. The other good news for home owners is that energy efficiency is very desirable for buyers, so not only will these upgrades lower your taxes and energy bills, they will also increase your property value.*

Tax Credit: 10% of cost up to $500 or a specific amount from $50-$300.Details: Must be an existing home & your principal residence. New construction and rentals do not apply.

Gas, Propane or Oil Furnaces and Fans– Gas furnaces that are ENERGY STAR certified (except those for U.S. South only) meet the requirements for the furnace tax credit. Gas and oil furnaces that have earned the ENERGY STAR include fans that meet the requirements of the fan tax credit.

Insulation– Adding adequate insulation is one of the most cost-effective home improvements that you can do.

Roofs– This tax credit is for ENERGY STAR certified metal and asphalt roofs with pigmented coatings or cooling granules designed to reduce heat gain.

Tax Credit: 30% of cost with no upper limitDetails: Existing homes and new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.

Geothermal Heat Pumps– Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the earth’s natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available.

Small Wind Turbines (Residential)– A wind turbine collets kinetic energy from the wind and converts it to electricity that is compatible with a home’s electrical system.

Solar Energy Systems– Solar water heaters come in a wide variety of designs, all including a collector and storage tank, and all using the sun’s thermal energy to heat water. Solar water heaters are typically described according to the type of collector and the circulation system.

Tax Credit: 30% of cost with no upper limitDetails: Existing homes and new construction qualify. Must be your principal residence. Rental homes and second homes do not qualify.

Fuel Cells (Residential Fuel Cell and Microturbine System)– Fuel cells are important enabling technology for the hydrogen economy and have the potential to revolutionize the way we power our nation, offering cleaner, more-efficient alternatives to the combustion of gasoline and other fossil fuels.

*Chart from National Association of Home Builders website. Information for this blog post was borrowed from www.energystar.gov.

As you probably know, California is in a major drought and water shortage. Even with the few rains we have had this Spring, we are no where near where we need to be in terms of water storage and supply.

With all of the news coverage the drought has received, you may have heard of turf replacement programs in San Diego County. These programs pay you to kill your lawn and install a water-wise landscape, including trees! Saving water is only one reason why this is such a good idea…

Turf Replacement’s Many Benefits

When you replace your lawn with low-maintenance native plants and trees, you increase your property value, lower your water bill, save money on landscaping, and stop polluting the environment with gas-powered tools, fertilizers, and pesticides. Another great benefit of a native garden is providing food and shelter for local birds and butterflies. Native plants can also help protect your property from wildfires (blog post coming soon!)!

Say No To Lawns

Lawns are like sponges. Turfgrass requires a tremendous amount of water to stay green. Water-wise landscapes use about 70% less water than lawns.

Lawns aren’t wildlife habitats. Lawns are not homes for our local wildlife. When our housing developments were built, construction workers cleared out our local coastal sage scrub and chaparral habitats to grade the land. Lawns don’t provide the food and shelter that once existed. When you install a native landscape, you participate in a small habitat restoration.

Lawns pollute. Lawns create a crazy amount of pollution. First, there are the fertilizers and pesticides that seep into our groundwater, causing all sorts of problems. Secondly, the regular mow-and-blow service that lawns require involves gas-powered tools that pump carbon dioxide into the atmosphere, and create loud noise throughout your neighborhood.

Lawns don’t support native trees. Development in the past 30 years has led to a major loss of trees in San Diego County. We need them to remove carbon dioxide from the atmosphere, reduce rainwater runoff, and cool down the earth. Trees can also keep you home cooler during the summer. Native trees use less water and provide excellent habitats for wildlife. It’s difficult to plant native trees in a traditional lawn, however, because their water requirements aren’t the same. Many native trees can die from being overwatered.

Current Programs in San Diego

In the past year, most of the funding for turf replacement programs in San Diego has run out. This means many people are killing their lawns and transitioning to native landscapes, which is great! There is currently one program in San Diego that will pay you to replace your lawn with a water-wise garden. Be sure to include trees as an important element of your landscape design.

The Department of Water Resources (DWR) – The California DWR has a rebate program for removing turf and replacing it with waterwise landscapes. The $24 million program budget is expected to support the conversion of more than 10 million square feet of turf, or approximately 20% of the statewide goal of 50 million square feet of turf. Up to $2 per square foot of removed and replaced turf will be rebated per eligible household. The total rebated amount, including any rebates the homeowner has already applied for from another agency, can’t exceed a total of $2 per square foot.

The DWR program is for front yards and backyards. You must have at least one tree. Mulch is required on all exposed soil surfaces. At minimum, 25% of the converted area include low-water-use, drought-tolerant or California native plants. The Program requires drip irrigation, micro-spray irrigation, or hand watering. Synthetic turf is not allowed. Click here to apply for the DWR rebate program.

Summary

Funding is limited for turf replacement programs in San Diego, so act now to secure your rebate. The red tape involved when applying for these rebates is a small price to pay for the long-term financial and environmental benefits of a sustainable landscape.

Our landscaping choices can reduce water use considerably, and make a significant impact on our community. Have you applied for these rebates? I would love to hear about your experiences. Please call or text me at (760) 390-6330 or email me at janairealtor@gmail.com.

Maintaining indoor air quality is important to your health all year. But when your home is sealed up to keep out the cold during winter, IAQ can really suffer.

Here are three ways to improve IAQ this winter.

Combustion appliances. Appliances like space heaters, wood stoves, and fireplaces that aren’t properly installed, maintained, and ventilated can be dangerous and create indoor pollutants. Understand the manufacturer’s instructions or call a professional for a check-up before using these items.

Humidity. Dust mites and mold thrive in moist conditions. If you’re using a humidifier, keep an eye on humidity and aim for levels of 30 to 50 percent.

Fragrances. A pine aroma seems fresh and festive, but avoid scented candles, air fresheners, moth repellents, and other synthetic fragrances. They often emit toxic chemicals that compromise air quality.

For more information about indoor air quality, head to the EPA’s Indoor Air Plus program for a list of risk factors and solutions.

Selected from National Association of Realtors Green Social Engagement Platform. Written by Elyse Umlauf

Your home is your castle, your own little piece of the American dream. But lately, your little corner of the world has been feeling cramped and you find yourself eyeing those larger homes. Is it time to pull up stakes and move on from your starter home?

Growing Family
If you’ve added to your family in recent years, you may have more bodies than bedrooms. A two-bedroom home may have been a great idea when it was just you and your spouse, but with two kids, you’re starting to have turf wars over the play area.

Overflowing With Stuff
From an overflowing toy chest to closets packed so tightly with shoes and coats you risk an avalanche every time you open the door, your home just doesn’t have the space to keep all your things. You may have even had to move some things off-site, spending money to rent storage space to keep that antique dresser your grandmother left you.

No Rest For The Weary
You’d love to spend an afternoon soaking in the tub, but before the warmth of the water can take you away, there’s a banging on the door of the only bathroom in the house and a chorus of “hurry up!” invading your quiet time. And the man cave you dreamed of? Those visions of a big screen television were shattered by the realization you needed somewhere for the kids to sleep.

No Room For Extras
When you first moved in, the two-car garage doubled as your woodworking shop. Now, the equipment has been sent to storage to make room for the family’s second car. You’d love to take up organic gardening, but your tiny yard barely has room for a grill and a lawn chair. You’d love to host your friends visiting from out of state, but there is hardly room for their luggage, much less them.

Changes In Career
You may have opted for a starter home when you first entered the market because you had a smaller income. Now, thanks to changes in careers or promotions at work, you can afford a home with greater square footage and room for your growing family that will provide the space you need for many years of happy memories.

Home prices across the country are starting to rise. Contact me today and take advantage of the opportunity to give your family the most space at the best price now. JanaiRealtor@gmail.com or call/text 760-390-6330.

1. Have 3-5 open lines of credit. An open line of credit constitutes a mortgage, car payment, student loan, personal loan, or credit card. You can not purchase a home without having at least 3 open lines of credit.

2. Maintain activity on all lines of credit. Many people don’t realize that not using your credit can actually damage your score. If you have a credit card that is paid off, but is still open, use if every couple months to buy something. I usually suggest designating one card to gas for the entire month. The following month switch to the other credit card.

3. Keep the balance on all credit cards at half or less than half of the entire available credit amount. This is difficult for many individuals to maintain in today’s economy; however it is better to have multiple credit cards with only half the balance than to have one credit card that is maxed out.

4. If you have to default on payments, never default on a mortgage payment. Although, not ideal, it is much better to have late payments on a credit card or car payment rather than your mortgage.

5. Do not inquire into your credit more than you have to. Every time you run your credit score, you are running the risk of decreasing your score. If for some reason you need to run your credit score multiple times, try to run it within a three day period as this is less noticeable than if you were to run it every couple of weeks. For instance, if you are going to buy a new car and want to know the interest rate that the dealer will charge and the interest rate that the credit union will charge; have both the dealer and the credit union run your credit the same day. This merely shows you were shopping for the best rate, rather than seeking tons of credit. If you want to know your credit score for your own curiosity, freecreditreport.com offers a monthly subscription – you can run your score multiple times, and the inquiry will not count against your score.

6. If you are looking to make a large purchase… such as buying property, do not go buy a car or rack up your credit card in charges, especially once you open escrow. Any large changes to your credit will negatively affect your score, this is inclusive of opening a new credit card.

7. Be cautious when opening and closing accounts. Every time you open a new line of credit you are taking the risk of decreasing your score. Why? A new line of credit has little to no payment history; therefore the creditor is unaware as to whether you make regular scheduled payments or not. The longer history a line of credit has, the better it reflects on your credit. For instance, a credit card that has been opened since you were 18, with up to date payments, is helping your credit score increase. A credit card that was opened last month is a risk. For the same reason, be cautious when closing accounts, especially if the account has been open for a long time.

8. Avoid Bankruptcy. Bankruptcy remains on your credit score for 7 years, sometimes longer if you don’t make sure that it is removed. They tend to have a more negative affect to your credit score the first few years. I suggest to consult an attorney in regards to Bankruptcy information.

9. Avoid Collections and Charge Offs. There is a lot of information that pertains to collections and charge offs, but for today’s article I am going to keep it short. It is very simple….One collection for as little as $5.00, can decrease your credit score by 100 points or more. Remember this. Now, a collection although it can destroy your credit score, can also be disputed, reduced, negotiated, and settled to lessen the destruction.

10. Check your credit score. Many people never check their credit score until they have to, not realizing that there could be information that is irrelevant to them. I have known a number of clients who have had negative information reported on their credit report that did not belong to them. For instance, information from someone who has a similar name, address, and/or social security number could be accidentally recorded onto your credit score.

If this happens to you, don’t worry. It is very simple to fix. All three credit bureaus: Transunion, Experian, and Equifax, now offer an online, “step by step”, service where you can dispute any negative information that is illegitimate. They will investigate the account, and make the appropriate changes; however keep in mind that Transunion will not go to Experian and advise them of the change, this is up to you. You will have to make sure all three bureaus are notified.

All information above is based on my previous experience and information obtained from resources such as NSDCAR. The above information can be helpful to increase your credit score, but is not guaranteed.

Renting a home is a good option for some, but buying a home just might be the best thing for you. When you rent a home, you send money to someone else every month in exchange for knowing that you can call on your landlord when the roof leaks, an appliance stops working or your bathroom faucet breaks. There are some big advantages to buying a house that will help you get out of your renting rut and focus more on your future.

Build Equity

Did you know that when you rent a home, you help someone else build equity? Any changes that you make with your landlord’s approval puts money back in his or her pocket. Keeping the yard clean and taking care of routine maintenance builds equity in that property. When you buy a home of your own, you have the chance to build equity of your own, which you can use to obtain a loan later.

Save On Your Taxes

When you rent a house, you cannot deduct the money you spend on your taxes. Though some states will let you make a small deduction based on the total amount you spend in rent each month, you cannot make any deductions on your federal taxes. When you buy a home, you can save with a few different types of deductions.

The federal government lets you make a deduction if your home is worth more than what you currently owe on your taxes. If you purchased your first home, you can make a deduction in regards to your property taxes. You can also deduct money that you spend on some renovations and energy saving appliances.

Put Your Personal Touch On Things

As long as you continue renting, you live in a home that belongs to someone else. Your landlord has final say over what you do and do not do. This often means that you cannot make repairs or significant changes without seeking approval first.

Buying a home lets you put your personal touch on things. You can paint the walls any colors you want, rip out the carpet to add hardwood flooring or even make significant changes outside to turn your new home into your dream home.

Now that you know more about the benefits of buying a home and how that purchase can get you out of the rental rut you’re in currently, call me. I’d love to answer any of your questions and help you find the perfect home for you! 760-390-6330 (call/text) janai@bentleysd.com.

National market update

Existing-Home Sales Rise in June as Home Prices Surpass July 2006 Peak

WASHINGTON (July 22, 2015) — Existing-home sales increased in June to their highest pace in over eight years, while the cumulative effect of rising demand and limited supply helped push the national median sales price to an all-time high, according to the National Association of Realtors®. All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months.Read more

3 Reasons Why It’s a Great Time for Sellers

Rising home prices, demand from home buyers, and less competition is making 2015 a stellar year to sell for many U.S. home owners across the country, says Daren Blomquist, RealtyTrac’s vice president.Read more

National housing indicators

Existing home sales (July) 5.49 millions units*

Existing home median price (July) $236,400

Housing Starts (July) 1.174 millions units*

New home sales (July) 0.546 millions units*

National economic indicators

Home ownership

The homeownership rate in the second quarter 2015 was 63.4 percent, down 1.3 (+/- 0.4) percentage points from the second quarter 2014 rate of 64.7 percent. The homeownership rates in the Northeast, Midwest, South and West were lower than the rates in the second quarter 2014.

New home sales

Sales of new single-family houses in June 2015 were at a seasonally adjusted annual rate of 482,000. This is 6.8 percent (+/- 12.5%)* below the revised May 2015 estimate of 517,000.

Source: U.S. CENSUS BUREAU

Regional market updates

View market statistics for your region.

Click on the links below to view data from two different industry sources. Choose information on local prices & state sales from any of 150 metropolitan housing markets prepared by the National Association of REALTORS® or information on sales & price activity from local area markets in 25 states prepared by Clarus MarketMetrics.

Local Prices & State Sales

Consumer tips & hot properties

5 Unexpected Lessons When Buying a Home (From People Who’ve Done It Before) You never forget your first time… buying a house. Here’s what took us by surprise in the whole complicated process. Read more

Dirty Secrets: 9 Things Your Landscape Designer Wishes You Knew For an outdoor oasis that is so you, make sure you know these 9 secrets (hint: designers don’t just do flowers). Read more

How to Find a Home Inspector Who Will Change Your Life. Really! A New York transplant who bought a home in Southern California tells the story of searching for—and finding—the best home inspector of all time. Here’s how you can find your own home-inspecting hero. Read more

This Secret-Room Fad Is Kind of a Mystery Doors in disguise and hidden rooms are in demand, and even designers aren’t sure why. Read more

Let’s examine how homeownership makes “cents” – from the tax benefits, to good old fashioned financial stability. The financial benefits of homeownership are evident year round, but particularly around tax time – they seem to jump off the page!

Homeownership Builds Wealth Over Time

We were always taught growing up that owning a home is a financially savvy move. Our parents knew it, and their parents knew it. But this past decade of real estate turbulence has shaken everyone’s confidence in homeownership. That is why it’s so important that we discuss this again now that we’re in a ‘new market.’ Homeownership can be a very savvy financial move – but only if people buy homes they can actually afford. In 2014, this idea of sticking to a home you can afford to gradually build wealth is a “rule” that just happens to be new and old at the same time.

You Build Equity Every Month

Your equity in your home is the amount of money you can sell it for minus what you still owe on it. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity. That is especially true now with the elimination of risky mortgages like negative amortized and interest-only loans – thanks to the new “Qualified Mortgage” rules. The way mortgages work is that the principal portion of your payment increases slightly every month year after year. It’s lowest on your first payment and highest on your last payment. Thus, as the months and years go by, your equity grows!

You Reap Mortgage Tax Deduction Benefits

Mortgage deduction: The tax code allows homeowners to deduct the mortgage interest from their tax obligations. For many people this is a huge deduction, since interest payments can be the largest component of your mortgage payment in the early years of owning a home.

Some closing cost deductions: The first year you buy your home, you are able to claim the points (also called origination fees) on your loan, no matter whether they are paid by you or the seller. And because origination fees of 1 percent or more are common, the savings are considerable.

Property tax is deductible: Real estate property taxes paid on your primary residence and a vacation home are fully deductible for income tax purposes.

Tax Deductions on Home Equity Lines

In addition to your mortgage interest, you can deduct the interest you pay on a home equity loan (or line of credit). This allows you to shift your credit card debts to your home equity loan, pay a lower interest rate than the horrendously exorbitant credit card interest rates, and get a deduction on the interest as well.

You Get a Capital Gains Exclusion

If you buy a home to live in as your primary residence for more than two years then you will qualify. When you sell, you can keep profits up to $250,000 if you are single, or $500,000 if you are married, and not owe any capital gains taxes. Now, it may sound ridiculous that your house could be worth more than when you purchased it after these past several years of falling house prices. However, if you purchased your home anytime prior to 2003, chances are it has appreciated in value and this tax benefit will come in very handy.

A Mortgage Is Like a Forced Savings Plan

Paying that mortgage every month and reducing the amount of your principal is like a forced savings plan. Each month you are building up more valuable equity in your home. In a sense, you are being forced to save—and that’s a good thing.

Long Term, Buying Is Cheaper than Renting

In the first few years, it may be cheaper to rent. But over time, as the interest portion of your mortgage payment decreases, the interest that you pay will eventually be lower than the rent you would have been paying. But more importantly, you are not throwing away all that money on rent. You gotta live someplace, so instead of paying off your landlord’s home or building, pay off your own!

With these tax savings and the record low financing rates right now, why wait to buy a home? Get in touch with me today! 760-390-6330 janai@bentleysd.com